Lincoln National Corporation (NYSE: LNC) and Prudential Public Limited (NYSE:PUK) are both large-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Risk and Volatility

Lincoln National Corporation has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500. Comparatively, Prudential Public Limited has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.

Dividends

Lincoln National Corporation pays an annual dividend of $1.16 per share and has a dividend yield of 1.6%. Prudential Public Limited pays an annual dividend of $0.78 per share and has a dividend yield of 1.6%. Lincoln National Corporation pays out 17.8% of its earnings in the form of a dividend. Lincoln National Corporation has raised its dividend for 6 consecutive years and Prudential Public Limited has raised its dividend for 4 consecutive years.

Profitability

This table compares Lincoln National Corporation and Prudential Public Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lincoln National Corporation 10.85% 10.99% 0.64%
Prudential Public Limited N/A N/A N/A

Earnings and Valuation

This table compares Lincoln National Corporation and Prudential Public Limited’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Lincoln National Corporation $13.86 billion 1.19 $2.17 billion $6.52 11.39
Prudential Public Limited $104.66 billion 0.59 $6.57 billion N/A N/A

Prudential Public Limited has higher revenue and earnings than Lincoln National Corporation.

Institutional and Insider Ownership

79.9% of Lincoln National Corporation shares are owned by institutional investors. Comparatively, 1.6% of Prudential Public Limited shares are owned by institutional investors. 1.4% of Lincoln National Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Lincoln National Corporation and Prudential Public Limited, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lincoln National Corporation 0 5 4 0 2.44
Prudential Public Limited 0 2 3 0 2.60

Lincoln National Corporation currently has a consensus price target of $73.78, indicating a potential downside of 0.65%. Given Lincoln National Corporation’s higher possible upside, equities analysts plainly believe Lincoln National Corporation is more favorable than Prudential Public Limited.

Summary

Lincoln National Corporation beats Prudential Public Limited on 10 of the 15 factors compared between the two stocks.

About Lincoln National Corporation

Lincoln National Corporation is a holding company, which operates insurance and retirement businesses through subsidiary companies. The Company sells a range of wealth protection, accumulation and retirement income products and solutions, through its business segments. The Company operates through four segments: Annuities segment, which offers fixed (including indexed) and variable annuities; Retirement Plan Services segment, which provides employers with retirement plan products and services; Life Insurance segment, which focuses on the creation and protection of wealth through life insurance products, and Group Protection, which offers principally group non-medical insurance products. These products include fixed and indexed annuities, variable annuities, universal life insurance, variable universal life insurance, linked-benefit UL, term life insurance, indexed universal life insurance, employer-sponsored retirement plans and services, and group life, disability and dental.

About Prudential Public Limited

Prudential Public Limited Company is an international financial services company. The Company offers a range of retail financial products and services and asset management services throughout these territories. The Company operates through Insurance operations and Asset management operations. The retail financial products and services include life insurance, pensions and annuities as well as collective investment schemes. Its insurance operations include Asia, the United States (Jackson National Life Insurance Company (Jackson)) and the United Kingdom. Its asset management operations include Eastspring Investments, M&G and Prudential Capital.

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